Question
Statistics for Economics Question on Probability theory
Let X∼N(μX,σX2) and Y∼N(μy,σy2) Which of the following is/are NOT correct?
The area F(X)= \frac1{\sigma _x \sqrt{2\pi}}$$\int_{-\infty}^{\mu_x} e^{-\frac1{2}(\frac{X-\mu_x}{\sigma_x})^2} dx is 1.
The areas under the normal probability curve between the ordinates at μx±3σx , and μy±3σy are 0.9544 and 0.9973, respectively.
For variable X,
Quartile Deviation: Mean Absolute Deviation: Standard Deviation ≅ 32σx:54σx:σx
If X and Y are independent, then (X−Y)∼N(μx−μy,σx2+σy2).
The area F(X)= \frac1{\sigma _x \sqrt{2\pi}}$$\int_{-\infty}^{\mu_x} e^{-\frac1{2}(\frac{X-\mu_x}{\sigma_x})^2} dx is 1.
Solution
The correct option is (A): The area F(X)= \frac1{\sigma _x \sqrt{2\pi}}$$\int_{-\infty}^{\mu_x} e^{-\frac1{2}(\frac{X-\mu_x}{\sigma_x})^2} dx is 1. and (B): The areas under the normal probability curve between the ordinates at μx±3σx , and μy±3σy are 0.9544 and 0.9973, respectively.